SLOVAKIA

Slovak Republic

Slovenska Republika

COUNTRY OVERVIEW

LOCATION AND SIZE.

The Slovak Republic is a land-locked nation in the eastern portion of
Central Europe, with access to the Black Sea via the Danube River. Its
neighbors are the Czech Republic to the northwest, Poland to the north,
Ukraine to the east, Hungary to the south, and Austria to the west. The
country's total area is 48,845 square kilometers (18,859 square
miles). Much of its northern and central terrain is composed of striking
mountains, similar to the American Rockies. Terrain in southern Slovakia
consists of plains in the west and rolling hills. Slovakia is about the
size of South Carolina, and it does not border a sea. The capital,
Bratislava, is located near the country's western border and is
not far from Vienna, Austria. Other major cities include Košice
in the east and Banská Bystrica in the center of the country.

POPULATION.

The population of Slovakia was estimated to be 5,407,956 in July 2000,
an increase of 3.25 percent over the 1980 population of approximately
4,996,000. The birth rate stood at 10 per 1,000 in 2000, and the death
rate was 9.29 per 1,000, resulting in a growth rate of .12 percent for
2000. Following this trend, the population for 2010 is projected at
5,473,203. The population has become increasingly urbanized, with 56.7
percent of Slovaks living in cities in 1999, up from 49.2 percent in
1980 and 32.8 percent in 1960.

Several ethnic groups make up the population. About 85.7 percent of the
people are Slovak, and 10.6 percent are ethnic Hungarians. Although the
census data registers 1.6 percent of the population as Romany (Gypsy),
this figure is believed to be an underrepresentation, with some experts
estimating as many as 500,000 Romany living in Slovakia. There are also
small numbers of Czechs, Moravians, Silesians, Ruthenians, Ukrainians,
and Poles. Approximately 60 percent of the population is Roman Catholic,
about 10 percent is atheist, 8 percent is Protestant, 4 percent is
Orthodox, and 17.5 percent list their religion as "other."

MANUFACTURING.

Many of the remaining manufacturing plants that were privatized after
communism included outdated equipment. Thus, foreign direct investment
has been extremely important in determining which industries survive the
transition to a market economy. Foreign investment was particularly
helpful in the areas of transport machines, auto production, and steel
production. The most sizable investments were made by the German company
Volkswagen and by U.S. Steel, which purchased the large East Slovakia
VSŽ Steel plant in the late 1990s. Automobiles and steel are
among Slovakia's most successful exports. Chemical production has
recently averaged approximately 18 percent of total industrial output
and includes chemical fibers and plastics. Other important sectors are
the production of textiles, clothing, and leather products such as
footwear, fuel and power production, and construction.

The late 1990s saw some decreases in the production of manufactured
products, as well as in chemicals, while exports of crude materials
remained at steady levels. According to employment figures for 1999,
employment trends in various manufacturing sectors varied widely. There
have been significant declines in employment in the areas of basic
metals and fabricated metal products, machinery and equipment, and
construction. The following manufacturing areas registered positive
increases between 1998 and 1999: textiles, electrical and optical
equipment, pulp and paper products, leather products, and transport
equipment.

MINING.

Approximately 4.6 million tons of coal are mined in Slovakia each year.
Other significant minerals include iron, copper, lead, manganese, zinc,
mercury, and lignite. Employment in the mining sector declined during
the 1990s.

CONSTRUCTION.

Construction levels initially increased dramatically after 1989, and
building materials represent over 3 percent of industrial output.
However, at the end of the 1990s, construction began to experience some
fluctuations in employment.

FINANCE, BANKING, AND INSURANCE.

As insurance was not provided under the communist system, there was
significant growth in this area during the 1990s. Financial services and
consulting companies experienced similar growth. Although foreign
companies initiated growth in this sector, they now have some domestic
competitors. An increasing number of commercial banks are under private
and/or foreign ownership.

RETAIL.

The retail portion of the service sector has undergone dramatic changes
since 1989. Under the communist economic system, retail was limited to
state-owned shops where product shortages were common and the displays
unattractive. In an effort to promote
full employment
, these stores maintained a complicated point-of-purchase system that
required several steps with different clerks at each level (selecting
the product, paying for it, and receiving it). Retail stores were
privatized as part of the process that took place under the Czechoslovak
state before 1993. The current retail sector consists of privatized,
restructured stores as well as completely new stores that have adopted
capitalist marketing methods. Among the most popular products for
consumer consumption are automobiles and foreign-produced appliances,
such as televisions, VCRs, and stereos. The repair sector is also
growing.

TOURISM.

Tourism has increased significantly since 1989, and it is targeted as a
primary sector of growth. Slovakia's chief urban attractions are
its largest cities, the capital city of Bratislava and Košice.
The country's best known feature is the striking High Tatra
mountains, comparable to the American Rockies, which offer numerous
opportunities for outdoor tourism such as skiing, hiking, mountain
climbing, and cave exploration. Visitors are also attracted by the
region's historic spas and castles. Slovakia hopes to make a bid
to be a site for a future Winter Olympics.

The number of tourists visiting Slovakia steadily increased after 1989,
with the majority of visitors coming
from Western Europe and neighboring countries. The dramatic increase in
tourism has led to an increased need for tourist services, particularly
hotels, and hotel accommodation income increased from 1.1 billion
korunas in 1993 to 1.8 billion korunas in 1995. In 2000, some 2.8
million tourists spent US$431 million in Slovakia. Unlike the situation
under the communist system, which featured a state-run, monopolistic
tourist bureau, the majority of tourist facilities have now been
privatized.

CAPITAL:

Bratislava.

MONETARY UNIT:

Slovenská koruna (Sk). One koruna equals 100 hellers. There are
coins of 10, 20, and 50 hellers, and 1, 2, 5, and 10 korunas. There are
notes of 20, 50, 100, 500, 1,000, and 5,000 korunas. The koruna came
into being with the division of Czechoslovakia into the Czech and Slovak
Republics in 1993 and is now valued at a different rate than the Czech
currency.